Buying a home in Mumbai or Delhi might feel like a milestone-but it could take you 30 years just to break even. That’s the sobering math behind a fresh LinkedIn post by Gurgaon-based real estate advisor Lovish Anand, who says the dream of homeownership depends entirely on location.
“Your dream home could be your worst investment depending on the city,” Anand warns, citing a study by 1 Finance that compares EMIs, stamp duty, maintenance, rent, deposits, and opportunity cost.
In cities like Mumbai, Delhi NCR, Gurugram, Noida, and Pune-especially for 3 BHKs-renting makes far more financial sense. Property prices are high, rental yields are low (often below 2%), and it can take over 30 years before ownership beats renting in terms of cost.
“That’s not an investment,” Anand writes. “That’s a slow bleed.”
Meanwhile, cities like Bengaluru, Hyderabad, Thane, Kolkata, and Chennai flip the script. With rental yields over 4% and property prices more reasonable, homeowners in these markets can break even in just 3-8 years-particularly for 2 BHK units.
The study recommends buying in cities or segments with higher rental yields and shorter breakeven periods. Renting is advised in high-cost, low-yield areas where the math just doesn’t add up for buyers.
The bottom line: location matters more than ever. In Anand’s words, “the numbers don’t lie”-and in 2025, owning a home isn’t always the smarter move.